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1 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved. © 2008 - 2013 Leffingwell, LLC. & Scaled Agile, Inc. All rights reserved. Building the Lean Agile Enterprise with the Scaled Agile Framework: Know the Way Show the Way Go the Way GOTO Zurich April 2013 By Dean Leffingwell 2 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved. Keeping Pace Our modern world runs on software. What doesn't now, likely will soon. We’ve had Moore’s Law for hardware, and Moore’s Law+ for envisioning what software could do But our prior development practices – waterfall, RAD, iterative and incremental – haven’t kept pace Agile shows the greatest promise, but was developed for small team environments We need a new approach – one that harnesses the power of Agile and Lean – but applies to the needs of the largest software enterprises Our methods must keep pace with an increasingly complex world

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1 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved. © 2008 - 2013 Leffingwell, LLC. & Scaled Agile, Inc. All rights reserved.

Building the Lean Agile Enterprise with the Scaled Agile Framework:

Know the Way Show the Way Go the Way

GOTO Zurich

April 2013

By Dean Leffingwell

2 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Keeping Pace

  Our modern world runs on software. What doesn't now, likely will soon.

  We’ve had Moore’s Law for hardware, and Moore’s Law+ for envisioning what software could do

  But our prior development practices – waterfall, RAD, iterative and incremental – haven’t kept pace

  Agile shows the greatest promise, but was developed for small team environments

  We need a new approach – one that harnesses the power of Agile and Lean – but applies to the needs of the largest software enterprises

Our methods must keep pace with an increasingly complex world

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3 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Framework Creator: Dean Leffingwell

  Founder and CEO ProQuo, Inc., Internet identity

  Senior VP Rational Software Responsible for Rational Unified Process (RUP) & Promulgation of UML

  Founder/CEO Requisite, Inc. Makers of RequisitePro

  Founder/CEO RELA, Inc. Colorado MEDtech

  Creator: Scaled Agile Framework

  Agile Enterprise Coach To some of the world’s largest enterprises

  Agile Executive Mentor BMC, John Deere

  Chief Methodologist Rally Software

  Cofounder/AdvisorPing Identity, Roving Planet, Silver Creek Systems, Rally Software

Agile Software Development Series

Alistair Cockburn and Jim Highsmith, Series Editors

Agile Software RequirementsLean Requirements Practices for Teams, Programs, and the Enterprise

Dean LeffingwellForeword by Don Reinertsen

4 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Contributors

Agile Software Development Series

Alistair Cockburn and Jim Highsmith, Series Editors

Agile Software RequirementsLean Requirements Practices for Teams, Programs, and the Enterprise

Dean LeffingwellForeword by Don Reinertsen

Principal Contributors

Drew Jemilo

Alan Shalloway

Colin O’Neill

Community Enterprise Adopters

Associate Methodologist

Acknowledgements

Alex Yakyma

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5 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

The Scaled Agile Framework (SAFe) The Scaled Agile Framework is a proven, publicly-facing framework

for applying Lean and Agile practices at enterprise scale

 Synchronizes alignment, collaboration and delivery

 Well defined in books and now on the web

 Scales successfully to large numbers of practitioners and teams

Core values: 1.  Alignment 2.  Code Quality 3.  Program Execution 4.  Transparency

®

http://ScaledAgileFramework.com

6 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Framework Creator: Dean Leffingwell

  Founder and CEO ProQuo, Inc., Internet identity

  Senior VP Rational Software Responsible for Rational Unified Process (RUP) & Promulgation of UML

  Founder/CEO Requisite, Inc. Makers of RequisitePro

  Founder/CEO RELA, Inc. Colorado MEDtech

  Creator: Scaled Agile Framework

  Agile Enterprise Coach To some of the world’s largest enterprises

  Agile Executive Mentor BMC, John Deere

  Chief Methodologist Rally Software

  Cofounder/AdvisorPing Identity, Roving Planet, Silver Creek Systems, Rally Software

Agile Software Development Series

Alistair Cockburn and Jim Highsmith, Series Editors

Agile Software RequirementsLean Requirements Practices for Teams, Programs, and the Enterprise

Dean LeffingwellForeword by Don Reinertsen

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7 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Contributors

Agile Software Development Series

Alistair Cockburn and Jim Highsmith, Series Editors

Agile Software RequirementsLean Requirements Practices for Teams, Programs, and the Enterprise

Dean LeffingwellForeword by Don Reinertsen

Principal Contributors

Drew Jemilo

Alan Shalloway

Colin O’Neill

Community Enterprise Adopters

Associate Methodologist

Acknowledgements

Alex Yakyma

8 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

SAFe Delivers Business Results

Agile teams average 37-50% faster to market

− QSM research

Significant increase in employee engagement

- John Deere

Our agile programs introduced 50% less defects into production

− Confidential

We experienced a 20-50% increase in productivity

− BMC Case Study

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9 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Business Results

  Field Issue resolution time: down 42%

  Warranty Expense: down 50%

  Time to production: down 20%

  Time to market: 20% faster

  Employee engagement: Up 9.8%

  More responsive to market changes and customer demands

  Development teams more engaged, empowered

  Productivity up 20-50%.

  Significantly improved Product Management-Development teamwork

  Higher returns, reduced investments in unfinished or unshipped work

John Deere ISG

Source: Chad Holdorf, John Deere, Intelligent Systems Group. Dallas, Texas Presentation, Dec 2011

Source: QSM Associates Press Release, Sep, 2007

10 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Business Results

  Productivity has increased by at least 20-25%

  Time to market and level of quality has increased dramatically

  Nearly zero defects after each tire store system release

  “No additional headcount and we're taking on more than we ever have”

March 12, 2012 News Release

“TradeStation Receives Highest Rating In Barron’s Magazine’s Annual Ranking of Online Brokerage Firms”

  Best Trading Experience and Technology

  Higher star-rating than 23 other offerings leading brokers, including TDAmeritrade, Charles Schwab, Fidelity, E*TRADE…

Source: Chris Chapman, Director of Product Development, Discount Tire

Source: Keith Black, CTO and VP, Product Development, TradeStation Technologies

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11 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Know the Way

Lean and Agile Development

12 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Lean Thinking Provides the Tools We Need

Respect for People

Product Development

Flow Kaizen

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13 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Goal: Speed, Value, Quality

THE GOAL   Sustainably shortest lead time   Best quality and value to people

and society   Most customer delight, lowest

cost, high morale, safety

All we are doing is looking at the timeline, from the moment the customer gives us an order to the point where we collect the cash. And we are reducing the time line by reducing the non-value added wastes.

Taiichi Ohno

We need to figure out a way to deliver software so fast that our customers don’t have time to change their minds.

Mary Poppendieck

Most software problems will exhibit themselves as a delay.

Alan Shalloway

Respect for People

Product Development

Flow Kaizen

14 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Respect for People

  Develop individuals and teams; they build products

  Empower teams to continuously improve

  Build partnerships based on trust and mutual respect

  Your customer is whoever consumes your work

  Don’t trouble your customers

  Don't force people to do wasteful work

  Don't overload them

  Don't make them wait

  Don't impose wishful thinking

  Equip them with problem-solving tools

  Form long-term relationships based on trust

Respect for People

Product Development

Flow Kaizen

PEOPLE

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15 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Kaizen

BECOME RELENTLESS IN:   Reflection   Continuous improvement as an

entreprise value

  Steady, small improvements

  Consider all data, then implement change rapidly

  Reflect at key milestones to identify and improve shortcomings

  Use tools like retrospectives, root cause analysis, and value stream mapping

  Protect the knowledge base by developing stable personnel and careful succession systems

Respect for People

Product Development

Flow Kaizen

16 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Product Development Flow

1.  Take an economic view

2.  Actively manage queues

3.  Understand and exploit variability

4.  Reduce batch sizes

5.  Apply WIP constraints

6.  Control flow under uncertainty: cadence and synchronization

7.  Get feedback as fast as possible

8.  Decentralize control Reinertsen, Don. Principles of Product Development Flow

Respect for People

Product Development

Flow Kaizen

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17 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Take an Economic View

  Develop an economic framework for decision making

  Empower local decision making

  Do not consider money already spent

  Understand the full value chain

  Sequence jobs for maximum benefit

  If you only quantify one thing, quantify the cost of delay

Base your decisions on economics

Cost of Delay High Weight First

B C

A

Reinertsen, Don. Principles of Product Development Flow

18 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Agile Accelerates Value Delivery

4 444 : Documents Documents Unverified Code Software

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19 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Agile Process Movement

Iterative Processes

Spiral RAD RUP…

Agile (Adaptive) Processes

Scrum, XP, Lean, Open UP, FDD, Crystal…

1970 1980 1990 2000

Predictive Process

2010

Enterprise Agility

SAFe Enterprises

BMC Software, TradeStation Technologies, John Deere, Nokia, Tripwire, Discount Tire, Nokia Siemens Networks, Nordstrom, Visa, Capital One

20 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Makes Money Faster

TIME

VA

LUE

DE

LIV

ER

Y

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21 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Reduces Risk

Ris

k

Agile

Waterfall

Time

Deadline

?

22 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Delivers Better Fit for Purpose

Time

waterfall plan, result

agile (adaptive) plan, result

Measure of waterfall customer dissatisfaction

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23 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Show the Way

The Scaled Agile Framework ®

24 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

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25 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Agile Teams

  Empowered, self-organizing, self-managing teams with developers, testers, content authority

  Teams deliver valuable, fully-tested software increments every two weeks

  Teams apply Scrum (and Kanban) project management practices and XP technical practices

  Teams operate under program vision, system, architecture and User experience guidance

26 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Scale to the Program Level

  A self-organizing, self-managing team-of-agile-teams committed to continuous value delivery

 Organized around enterprise value streams

  Aligned to a common mission

 Delivers fully tested, system-level solutions every 8-12 weeks

 Common sprint lengths and normalized velocity

  Face-to-face planning cadence provides development collaboration, alignment, synchronization, evaluation

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27 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Develop on Cadence. Deliver on Demand.

Deliver on Demand

Develop on Cadence

Customer Upgrade

Customer preview Docs and

certs QA-Release to Market- Governance Firewall

Major Release

Docs and certs

Feature Release

Major Release

PSI PSI PSI PSI PSI PSI

28 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Scale to the Portfolio

  Lean principles emphasize sustainably fastest value delivery

  Portfolio vision guides investments and the enterprise architecture needed to support customer and business needs

  Business epic kanban system provides visibility and work-in-process limits to support continuous product development flow

  Enterprise architecture is a first class citizen; architectural epics are developed and maintained in a kanban system

  Objective metrics support governance and kaizen

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29 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Program Portfolio Management

SAFe patterns provide a transformation roadmap

#1 Centralized control Decentralized decision-making #2 Project overload Continuous value flow #3 Detailed project plans Lightweight business cases #4 Centralized annual planning Decentralized, rolling-wave planning #5 Work Breakdown Structure Agile estimating and planning #6 Project-based funding Agile Release Trains #7 Projects and PMBOK Self-managing teams and programs

#8 Waterfall milestones Objective, fact-based measures and milestones

Legacy PPM Agile PPM

30 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Centralized Strategy; Localized Execution

Central Decision Making

Kanban

Prog

ram

Back

log

Prog

ram

Back

log

Prog

ram

Back

log

Local Decision Making

Market Feedback

One theme drives cross cutting Epics

Themes Drive Release Train

Operating Budgets

Portf

olio B

acklo

g

Strategy

Investment Themes

Value Stream feedback

Value Stream feedback

Value Stream feedback

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31 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Agile Program Portfolio Management

Agile Program Portfolio Management fulfills key responsibilities

  Agile estimating and planning

  Agile Release Trains   Agile Program

Management

  Decentralized decision-making

  Continuous value flow   Lightweight business

cases   Decentralized, rolling-

wave planning

  Objective, fact- based measures and milestones

32 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Summary – SAFe Core Values

Collec&ve    Ownership  

Test-­‐First:  TDD  ATDD  

Emergent    Design  

Scalability  Required  

Agile    Analysis  

Con&nuous    Integra&on  

XP  Inspired  

User  Stories  

SAFe Scrum

XP Inspired Technical Practices

1. Alignment   Sprint and PSI/Program

objectives   Aligned sprints and velocities   Program architecture and UX

Guidance, governance   Lean prioritization

2. Code Quality   Test First: TDD and ATDD   Continuous integration:

component and system   Test automation   Fortnightly system

demonstration

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33 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Summary – SAFe Core Values

3. Program Execution   Economic prioritization   Frequent, evaluable, quality

deliveries   Fast customer feedback   Fixed, reliable cadence   Fast tracking to actual needs

4. Transparency   All backlogs and progress

visible to all stakeholders

  Objective reporting based on working code

  Everyone understands capacity, velocity, WIP

34 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Go the Way

Lean|Agile Leadership

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35 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Foundation: Leadership

  Management understands and teaches lean and agile behaviors

  Management is trained in practices and tools of continuous improvement

  Management takes responsibility for Lean|Agile success

  Management teaches employees problem solving and corrective action

  Managers are expected to see with their own eyes

  Managers develop people. People develop solutions.

Respect for People

Product Development

Flow Kaizen

Lean-Thinking Manager-Teachers

 Management is trained in lean thinking

 Bases decisions on this long term philosophy

36 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Inspire, Inform, Educate Inspire: Expect and challenge management to lead, not follow the

Lean|Agile Transformation

  Lean|Agile leadership trainings and workshops

  Scaled Agile Framework Training and Certification

  Lunch and learns: •  Principles of Product

Development Flow, Reinertsen

•  Agile Software Requirements, Leffingwell

•  Lean Software Development, Poppendieck

  Form and support a Lean|Agile working group

  Include management   Create and work the

transformation backlog   Implement continuous

communication plan

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Conclusion

 The foundation of Lean is leadership

 The foundation of SAFe is you

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39 © 2008 - 2013 Leffingwell, LLC, and Scaled Agile, Inc. All rights reserved.

Next Steps

Agile Software Development Series

Alistair Cockburn and Jim Highsmith, Series Editors

Agile Software RequirementsLean Requirements Practices for Teams, Programs, and the Enterprise

Dean LeffingwellForeword by Don Reinertsen

  Browse the framework at scaledagileframework.com

 Read Agile Software Requirements

 Get training, certification, courseware and implementation tools through Scaled Agile Academy

  Start/accelerate your Lean|Agile transformation now

  Implement your first Agile Release Train